Indofood allocate IDR4.2 trillion capex

PT Indofood Sukses Makmur Tbk,Indonesia's biggest noodle and flour maker, allocated IDR4.2 trillion for capital expenditure.

Indofood will use part of the capital to complete construction of two sugar mills on Java and Sumatra islands and to buy land for oil palm plantations in Papua.
The mills will start production in the second half, one with the capacity of 3,000 metric tons of sugar cane a day and the other with 8,000 tons to 10,000 tons.

Indofood will also sell a stake of its noodle and food processing unit PT Indofood CBP in an initial public offering in the fourth quarter. Most of the proceeds from the IPO will be used to
refinance debt. Indofood received shareholders approval today to pay a dividend of 93 rupiah a
share from last year earnings.

In quarter I/2010, Indofood raked up IDR9.3 trillion revenues and thus generated IDR632 billion net profits. The largest income was contributed by branded products with 41 percent contribution, then followed by Bogasari sales of 25 percent, agribusiness sector sales 32 percent, and distribution sector 2 percent.
In terms of liabilities, the company hs IDR25.21 trillion consisting of IDR4.31 trillion bonds and IDR7.1 trillion bank loans.